GST Consultant India

GST Consultant in India | GST Consultants in Hyderabad

As you are aware that the Goods and Services Tax (GST), the biggest reform in India’s indirect tax structure rather we can say that the biggest business reform in India since Independence, at last set to become reality and rolled out from 1st July 2017.

We are offering the GST consulting services in Hyderabad, India. Contact Us to know more about our GST services and tax related help.

Goods and Service Tax is the largest Indirect tax reform in India which is going to impact the way business is carried out at pan India level. It’s going to replace almost all the existing Indirect tax or levies like Excise Duty, Service Tax , VAT, Entry Tax etc. It’s impact will vary across the different kind of businesses.

Dual GST structure enhances the overall complexity which can be mitigated through a robust IT system. It’s imperative and high time for companies to gear up and assess the likely impact of GST on their kind of business.

Now, almost whole India will be one market, breaking the boundaries of erstwhile State specific indirect taxes.

Contact us, for more details, we will help you in GST consulting in India.

What is GST?

GST stands for Goods and Service Tax. It is a kind of tax imposed on sale, manufacturing and usage of goods and services. Goods and Service Tax is applied on services and goods at a national level with a purpose of achieving overall economic growth. GST is particularly designed to replace the indirect taxes imposed on goods and services by the Centre and States.

Goods and Service Tax in India:

In India, the Goods and Service Tax Bill was officially introduced in 2014 as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014. The GST Bill in India proposes the implementation of nationwide Value Added Tax on sale, manufacturing and the use of different goods and services. The Goods and Service Tax act is expected to be operative in India from April, 2016.

Arun Jaitley – the Finance Minister of India announced The Constitution (One Hundred and Twenty-second Amendment) Bill, 2014 or the Goods and Service Tax in Lok Sabha on 19 December 2014. The Parliament passed the bill on 6th May, 2015, after it received 352 votes for and 37 against it.

Current Taxation System:

GST is a kind of indirect tax. Currently, Indian consumers have to pay indirect tax on goods and services such as Value Added Tax, Service Tax, Excise Duty, Customs Duty, etc. Under the current system, each State has a right to levy their own tax on the goods coming into their dominion for sale and consumption, while the Centre levies taxes on manufacture of the goods. All these direct taxes levied on the traders are passed down to the consumer.

How GST Works:

GST proposes to abolish the varying levels of taxation between States, and consider the country as a single whole organism when it comes to taxes on goods and services instead of as a segmented creature. All the sundry taxes will be clubbed into just 2 levels – Central GST and State GST. What a trader will essentially be able to do is claim a refund on the taxes already paid at different stages of value addition. The consumer who buys the product will have to pay only the GST charged by the last dealer in the supply chain, as everyone else would have the opportunity to set-off the taxes paid at the previous stages. If we take the example above under the GST system, the Cenvat on manufacturing the dress and the taxes paid on dyes and buttons can be offset at each level, thereby considerably reducing the total taxes paid.

GST will also prevent the multiple taxation occurring on certain goods, and ensure transparency with regards to the rate of taxation and the total amount that goes to the government as taxes on a product. Currently, a consumer is not aware of the total amount of taxes s/he pays for a product, apart from VAT which is mentioned on the bill.

Here’s a list of taxes that the GST will likely replace:

Service Tax

Cesses and surcharges related to supply of goods or services

Central Excise Duty

Excise Duties on medicinal and toilet preparations

Additional Excise Duties on textiles and textile products

Additional Excise Duties on goods of special importance

Additional Customs Duties (CVD)

Special Additional Duty of Customs (SAD)

These are the taxes that could be absorbed into the GST regime:

Central Sales Tax

State VAT

Entry Tax

Purchase Tax

Entertainment Tax (not levied by local bodies)

Luxury Tax

Taxes on advertisements

State cesses and surcharges

Taxes on lotteries, betting and gambling

Advantages of GST:

This is a federal law, which means that the states will no longer have the right to make new laws on taxation towards goods and services.

It simplifies the tax system and makes it easier to understand as well as cheaper to implement at various levels.

Tax evasion at various stages will be eliminated as tax offsets can be collected only if taxes have been paid originally. You will also be able to buy raw materials or constituent materials for production only from those who have paid taxes, in order to claim benefits.

It will be cheaper to buy input goods and services for production from other states.

The current supply and distribution chain may undergo a change with a change in taxation system that does away with excise and customs duties.

The consumer will get the end-product at cheaper rates because of elimination of multiple taxes and the tax cascade.

As of now, petroleum and petroleum products have been kept out of the GST regime until further notice.

Sale of newspapers and advertisements are also likely to fall under the GST regime, allowing the government to increase its revenue considerably.

While there will be central GST and state GST, the tax applicable on goods and services being exported and imported between states in India would fall under an Integrated GST (GST) system in order to avoid conflict of dominion.

Disadvantages of GST:

GST is not good news for all sectors, though. In the current system, many products are exempted from taxation. The GST proposes to have minimal exemption list. Currently, higher taxes are levied on fewer items, but with GST, lower taxes will be levied on almost all items.

GST is not applicable on liquor for human consumption. So alcohol rates will not get any advantage of GST.

Stamp duty will not fall under the GST regime and will continue to be imposed by states.